Property Tax Refunds

In compliance with a S.C. Supreme Court ruling, Charleston County is sending out notices to approximately 90,000 property owners eligible for a tax refund from the 2001 tax year. The notices include the refund amount and residents have until January 15, 2005, to return the enclosed refund application to the county Assessor's Office.

If you still have questions after reading the information below, you can call the refund hotline at 843-958-4144 or contact the Assessor's Office at 2001refund@charlestoncounty.org.

A searchable list of properties is available online. The refund amount is shown for properties eligible. If the property owner benefited from the 2001 Reassessment Cap, the list will show "N/A" in the refund amount column.

Here are highlights of the refund process and who is eligible:

Who is eligible for refunds?
-	Owners of real property - land, buildings and manufactured housing - in Charleston County who:
	-	were billed for property taxes in 2001, and
	-	did not qualify for the 15 percent reassessment cap given that year to owner-occupied residences, and
	-	participated in a lawsuit challenging the legality of the cap.
		-	Qualified property owners automatically were included unless they specifically chose to "opt out" last year after receiving a mailing about the lawsuit.
-	Approximately 90,000 properties are eligible for a refund.
-	Primary beneficiaries are owners of:
	-	Commercial properties
	-	Industrial properties
	-	Second homes/rental properties
	-	Owner-occupied residences that did not increase more than 15 percent and did not get an exemption.

What is the process for getting a refund?
-	Effected taxpayers should receive notices by the second week of October 2004 with an application allowing them to request a refund, if they are eligible.
-	The notices will provide the amount of the individual refund.
-	The deadline for filing applications is January 15, 2005.
-	Property owners receiving notices have three choices:
	1.	Agree with the refund amount: Sign the form and return it to the Assessor’s Office. Checks will be sent, including interest owed.
	2.	Disagree with the refund amount: Sign the form and return it to the Assessor’s Office with documentation or explanations supporting why the amount is inaccurate and provide the refund amount expected. A three-member Refund Committee, as outlined in state law, will review the information submitted. If property owners disagree with the Committee's ruling, they can further appeal to the Board of Assessment Appeals and on to the Administrative Law Judge and through the court system.
	3.	Choose not to receive any refund: Property owners should just not return the form.

What is a 15 percent reassessment cap?
-	The cap is NOT a tax cap
-	The cap is calculated based on the value of a property and limits how much a property’s value can increase from one reassessment to the next. The 2001 cap meant owner-occupied properties would be assessed - and taxed - based on a maximum 15 percent growth over the previous reassessment. Since the value of a property is used in the calculation of taxes, a reduction or cap of a property’s value can result in lower taxes.
-	Reassessment cap example:
	-	If an owner-occupied home had been worth $100,000, but during reassessment the current fair market value placed the home’s value at $200,000, the home would be taxed "as if" it were worth $115,000 (or 15 percent above the previous $100,000 value). This property owner would not pay taxes on $85,000 of the property’s value. ($200,000 - $115,000 = $85,000)

Why is there a tax refund?
-	Charleston County Council approved a 15 percent reassessment cap for Tax Year 2001 (bills that went out in September 2001) on property values for owner-occupied homes. The purpose of the cap was to help homeowners whose property had increased dramatically in value from one reassessment year to another. The S.C. Attorney General’s Office and other legal officials concurred that this could legally be done.
-	The SC Supreme Court struck down the cap ordinance, saying that a cap must be applied to all real property or none at all.
-	Charleston County was sued by those not receiving the cap exemption. The lawsuit said some property owners paid more in taxes to make up for the exemption, and the related savings, given to owner-occupied homeowners, and that these property owners should receive refunds.
-	As part of the county’s arguments to the court, it argued that if refunds were ordered, the county should be allowed to rebill for Tax Year 2001 to correct both underpayments and overpayments.
-	The Circuit Court ruled in favor of those suing and wanting an immediate tax refund.
-	In August, the Supreme Court disagreed, saying no one was eligible for an immediate refund. However, the court reopened the time period that allows property owners to request a refund through the existing administrative process as outlined in state law.
-	The cap was only in place in Tax Year 2001. Because of the pending litigation in a separate lawsuit, County Council halted further exemptions until a final court decision could be rendered.